Abreen Corp. v. Laborers' International Union

709 F.2d 748
CourtCourt of Appeals for the First Circuit
DecidedJune 14, 1983
DocketNos. 82-1149 to 82-1151, 82-1158 to 82-1160, 82-1191 and 82-1206
StatusPublished
Cited by7 cases

This text of 709 F.2d 748 (Abreen Corp. v. Laborers' International Union) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abreen Corp. v. Laborers' International Union, 709 F.2d 748 (1st Cir. 1983).

Opinions

LEVIN H. CAMPBELL, Chief Judge.

This labor case requires a resolution of difficult questions concerning illegal secondary activity, and a determination of the extent and amount of liability for such activity. The facts as found by the district court are as follows:

In August 1978 Martin Bernard and Isa-dore Wasserman secured rights to construct a shopping mall and a Hilton Hotel in Na-tick, Massachusetts. They contracted with Abreen Corporation (“Abreen”), a Massachusetts general contractor, to perform construction of the project. In the summer of 1978 work began on the project.

On March 19, 1979, Laborers’ Local 609 (“Local 609”) began picketing a subcontractor, Seppala and Aho (“S & A”) at the Abreen work site, protesting its nonunion status and arguing it should pay area standard wages. In response, Abreen established a separate gate (Gate 1) for S & A workers and a second gate (Gate 2) for all other subcontractors.1 During the week of March 19, 1979, Local 609 confined its picketing to Gate 1.

During the second week of picketing, Local 609 continued to picket Gate 1, but also occasionally picketed Gate 2. On one occasion a Rosenfeld truck delivering concrete for a neutral supplier was stopped at Gate 2 by Local 609 picketers and Maurice Blumberg, a field representative of Massachusetts Laborers’ District Council (“MLDC”), along with several other District Council members. The district court also found that Blumberg threatened to “shoot [the] head off” a truck driver who attempt-, ed to make a delivery through Gate 1 and threatened to send a photograph to the local union of a truck driver delivering to suppliers of a plumbing subcontractor through Gate 1. At one stage Blumberg shouted to an Abreen official, Philip Abrams, that the project “would never finish nonunion.”

On March 25, 1979, Arthur Coia, Vice President of Laborers’ International Union of North America (“IU”) placed a telephone call to Aldo Baretta, Vice President of Du-rastone Flexicore (“Durastone”), supplier of cement planks which S & A was to install for flooring in the project. In the telephone call Coia commented that if Dura-stone delivered its shipments of cement planks to the project, “there would be a problem,” since Durastone’s truck drivers would face a picket line. The district court found that as a result of the phone call Durastone cancelled the shipment of planks. Previously, Raymond Baretta, the Plant Manager of Durastone, had been told by the local shop steward that Durastone employees, who were represented by Local 315 of Laborers’ International, would not load trucks going to the Natick site. A few days later unidentified picketers led by the Business Agent of Local 609 appeared at Dura-stone’s plant. The record is unclear exactly when this picketing occurred. On March 27,1979, however, Abreen sent trucks to the Durastone plant to pick up the material. Durastone employees refused to deliver the materials. Abreen then contracted with another supplier.

On March 26, 1979, additional pickets appeared at Gate 2 of the Natick site carrying “minority” picket signs. These pickets failed to direct their protests at any particular employer. These picketers protested the treatment of blacks and other minorities at the work site, contending that they deserved higher wages. On March 27, James Merloni, Jr., Vice President of Local 609, was present at both gates and removed a minority worker’s sign from the trunk of his car and gave it to an individual who began picketing at Gate 2. Later that day Merloni directed a “minority workers” picketer to a point between Gate 1 and Gate 2.

During the week of April 2, picketing continued exclusively at Gate 1. On April [753]*75316, 1979, Abreen shut the work site down for Patriot’s Day, an unscheduled holiday, as requested by the Natick police. Local 609 held a rally featuring speeches at the work site, urging S & A workers to unionize. Thereafter, picketing was only sporadic.

After the project was completed in March 1980, Abreen and Bernard and Wasserman both instituted suits against the three unions, Local 609, MLDC and IU, alleging damages as a result of illegal secondary picketing at the job site. In November 1981, the district court joined both cases and set a trial date. On December 16,1981, after a four-day trial, the court found that illegal secondary picketing had occurred and held all three unions jointly and severally liable. The district court awarded Abreen $120,264.38 and Bernard and Was-serman $55,102.76 in damages. All parties appealed.

On appeal each union disclaims liability and in the alternative contends that the district court’s damages award was excessive. Further, they argue Bernard and Wasserman did not have standing to sue under section 303 of the Labor Management Relations Act of 1947, 29 U.S.C. § 187 (“LMRA”). On the other hand, Bernard and Wasserman argue they have standing to sue and join with Abreen in contending their damages award was insufficient.

We hold Bernard and Wasserman have standing to sue in this case. We affirm the determination of the district court that Local 609, IU and the MLDC violated section 303. We find erroneous, however, several aspects of the district court’s award of damages.

I. STANDING TO SUE

Appellant unions initially contend that Bernard and Wasserman, acting through the Natick Village Mall Associates (“NVMA”) lacked standing to sue under section 303 of the LMRA. They allege the organization was formed over a year after the events of this case, that the injury to NVMA was remote and indirect, and that the zone of interest protected by section 303 did not encompass NVMA. We disagree.

NVMA was formed twelve months after the crucial events in this cáse, but it was only an alter ego of SN Realty Trust with Bernard and Wasserman as its general partners. All of the assets, including the land and other rights affected by this case, were transferred to NVMA. We, therefore, find the difference in legal entities unimportant in this case. See Abbott v. Local Union 142, 429 F.2d 786 (5th Cir.1970). The key question is whether Bernard and Was-serman, as developers, have standing under section 303.

In W.J. Milner & Co. v. IBEW, Local 349, 476 F.2d 8 (5th Cir.1973), the court, with the caveat that the list was not exhaustive, proffered three circumstances where a court could find a third party was sufficiently affected by a union’s illegal secondary picketing to sustain liability: (1) where it was established the third party was part of an integrated business with either a neutral or the primary employer; (2) where the third party was directly injured by the actions of the union; and (3) where a principal-agent relationship was shown between the third party and primary employer. Id. at 12. In this case illegal picketing which adversely affected Abreen reasonably could be foreseen to adversely affect Bernard and Wasserman. W.J. Milner, 476 F.2d 8 (where sales agent of primary employer directly in line of fire of secondary boycott, and injury to such agent reasonably foreseeable by union, standing established under section 303); Pennsylvania R.R. Co. v. National Maritime Union, 206 F.Supp.

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